Negative assessment of the German economy: New York Times portrait draws critical conclusions

Negative assessment of the German economy: New York Times portrait draws critical conclusions

According to a report by www.berliner-zeitung.de, the Berlin correspondent for the New York Times, Melissa Eddy, has written a portrait of the German economy that draws a negative conclusion about the performance of the German economy. Germany's economy shrank by 0.3 percent last year, making it the slowest-growing economy among the 20 countries in the euro zone. Industrial production has fallen for five consecutive months and is not expected to recover quickly in 2024.

The problems of the German economy are explained by growing international competition, increasing bureaucracy and low flexibility at home. Automakers in Germany are now competing with cheap electric cars from China, and there is growing competition with the United States to attract tech giants. Germany has not managed to keep its industry competitive with sufficient flexibility and digital know-how.

The budget crisis, triggered by a ruling by the Federal Constitutional Court, means that Germany has to scale back necessary investments. In the G20 group, Germany and Argentina could occupy one of the last places in terms of economic growth. However, there is a silver lining as inflation has fallen and wages have risen, which has increased the purchasing power of the population. Nevertheless, the structural problems remain.

German industry also suffers from a lack of cheap energy sources, aversion to innovation and risk, and a lack of progress in the digital sector.

The combination of these factors could lead to a further decline in the German economy and a potential loss of competitive advantage in the global market. It is crucial that measures are taken to strengthen the competitiveness of the German economy and reverse the negative trends.